Alphabet Inc. (GOOGL) owned video streaming YouTube has been sued by Cryptocurrency Company Ripple citing the video viewing platform has failed to protect innocent clients from cryptocurrency frauds.
Among ways in which these frauds are committed include using fake YouTube accounts to dupe unsuspecting victims into sending money with promises of false giveaways.
According to the court filing, these scammers have been masquerading as Ripple’s Chief Executive, Brad Garlinghouse, thereafter they dupe innocent victims into sending XRP worth thousands of dollars.
XRP is a cryptocurrency managed and controlled by Ripple.
In the fraud, a deal is stricken that, the victims are promised to receive up to 5 million XRP which is currently worth around $1 million. Unfortunately, victims who participate in the fake giveaway never receive money in return.
Tech companies are protected from such scams by Section 230 of the Communications Decency Act which shields these companies from taking liability for materials posted by users on their various platforms.
Lawyers representing Ripple are seeking a review of the law citing it has been helping U.S based internet companies grow while on the other hand it has been exposing innocent users to cyber-crimes and online frauds.
“For every scam, giveaway, fake conspiracy that is taken down, multiple more pop up nearly immediately. YouTube and other big technology and social media platforms must be held accountable for not implementing sufficient processes for fighting these scams,” posted Ripple.
In response to these claims, through its spokesperson, Alex Joseph, YouTube says they always take fraud and misinformation cases seriously. “We quickly when we detect violations of our policies, such as scams or impersonation,” said Joseph.
Ripple’s CEO is calling for a much needed review of the law arguing it was written at a time when no one would imagine how much damage could be caused by online fraud.